Public sector Pensions: Increased pension levy is nothing more than a cash grab says STUC

“Today’s announcement is confirmation that the Government is set on a cash grab to bail out the banks and its own bad economic policies, when all the evidence is that public sector pension schemes are both affordable and sustainable.

“This is the first step in a three year plan to increase contributions by over 3% at the same time as threatening to reduce final pensions and increase the retirement age. It must not be forgotten that public sector pay is effectively frozen. Pay cuts and increased pension contributions will mean that an average public sector worker will be over well over £2000 worse off per year by 2014 if the government has its way.

“The limited protection for very low paid workers affects relatively few. And if the Government wants to tackle the highest paid it should do so through fair taxation levied on those in public and private sectors.”